42/2015 - Information on conclusion of material agreements

The Management Board of Trakcja PRKiI S.A. ("the Company", "the Issuer") hereby announces that the Company concluded material agreements of total value of PLN 180,390,940.45 (one hundred and eighty million, three hundred and ninety thousand, nine hundred and forty PLN, 45/100) with PKP Polskie Linie Kolejowe S.A. based in Warsaw ("PKP") within the period commencing from 27.07.2015, i.e. from the publication date of the Current Report 32/2015 until today.

 

Agreement of the highest value

The highest value agreement of these above mentioned is the agreement mutually signed today, i.e. on 5 October 2015, on Continuation of upgrade work on Railway Line E59 (track and subgrade work and track infrastructure work) as part of the Project 7.1-5.1 under Infrastructure and Environment Operational Programme, entitled "Modernization of Railway Line E59 at the section Wrocław-Poznań, Stage III, section Czempiń – Poznań" ("the Agreement").

 

Value of the Agreement

Net value of the Agreement is PLN 173,383,051.02 (one hundred and seventy-three million, three hundred and eighty-three thousand, fifty-one PLN, 2/100).

Gross value of the Agreement is PLN 213,261,152.75 (two hundred and thirteen million, two hundred and sixty-one thousand, one hundred and fifty-two PLN, 75/100).

 

Work completion date

According to the Agreement, the Company shall complete the work within 11 months from the date of commencement thereof.

 

Contractual Penalties

The Agreement comprises provisions on contractual penalties to be paid by the Contractor that may exceed at least 10% of the value of the Agreement. 

                                                                                                                     

For the withdrawal from the Agreement for reasons attributable to the Contractor, the Contractor shall pay a penalty of 30% of the value of the Agreement.

 

Contractual penalties accrued in total should not exceed 30% of the value of the Agreement.

 

Payment of the contractual penalty does not waive the PKP's right to claim, under general rules of law, damages in excess of the contractual penalty stipulated.

 

Terms of the Agreement

Terms of the Agreement do not differ from contractual terms that are usually used for this type of agreement.

 

Criterion for considering the Agreement a material agreement

The criterion for deeming the Agreement a material agreement was the fact that the value of the Agreements concluded by the Company with PKP within the period commencing on 27.07.2015 exceeded 10% of Company's equity capital.

 

 

Legal basis:

Section 5 paragraph 1 subparagraph 3 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognizing information required by laws of non-member states as equivalent. 

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